Jarden Brief: Boeing soars, and Carnival time for cruise company

American Airlines soared, as did some others in the travel and aviation sectors on US markets overnight. Photo / 123RF

Keeping you up to date with the latest market moves, in association with Investment firm Jarden

International

US

At the time of writing, the S&P 500 fell 0.3 per cent, and the Nasdaq decreased 0.3 per cent. The Dow Jones Industrial Average was up a slim 0.04 per cent.

Five of the 11 sectors were higher at the time of writing. These sectors were led by materials, up 0.7 per cent.

This was followed closely by financials and communication services, lifting 0.6 per cent and 0.5 per cent respectively. Conversely, the underperforming sectors were led by energy, dropping 1.6 per cent.

Health and technology were also laggards, declining 0.9 per cent and 0.4 per cent, respectively.

Airline holding company American Airlines Group was the top performing stock at the time of writing, advancing 11.0 per cent.

This follows the company updating their second quarter guidance, indicating an expected 12.0 per cent incline in total revenue when compared to the corresponding period in 2019.

Aerospace company Boeing also performed well, improving 8.6 per cent. The company reported that it has hit its highest monthly levels in deliveries since March 2019 - delivering 51 airplanes in June and 216 total for the first half of the year.

Rounding out the top movers was leisure travel company Carnival Corporation, increasing 8.8 per cent.

Digital workflow company ServiceNow was the biggest underperformer at the time of writing, reducing 12.0 per cent.

This follows the company's chief executive officer Bill McDermott warning global tech companies that they will not be able to outrun the strong US dollar. The company will be reporting their latest quarterly results on 27 July.

Closing out the bottom movers was software company Paycom Software and energy technology company Enphase Energy, falling 7.8 per cent and 7.6 per cent, respectively.

Rest of the World

Asian markets were red overnight. The Shanghai Composite downgraded 1.0 per cent, Nikkei fell 1.8 per cent, and the Hang Seng declined 1.3 per cent.

European markets were in the green. The FTSE rose 0.2 per cent, the DAX was up 0.6 per cent and the CAC gained 0.8 per cent.

The Euro and US dollar have reached parity, marking the Euro's lowest level against the dollar since December 2002.

Commodities

Gold traded 0.4 per cent lower to US$1,725 per ounce, while silver dropped 1.0 per cent to US$18.94 per ounce.

WTI Crude Oil performed poorly, regressing 7.4 per cent to US$96.34 per barrel at the time of writing.

The cryptocurrency market continued its downward trend, with Bitcoin decreasing 3.2 per cent and Ethereum down 6.0 per cent.

The US 10-Year Treasury rate fell two basis points to 2.967 per cent alongside a three basis point decline in the 30-Year rate, to 3.147 per cent. This comes ahead of a release of the latest US Consumer Price Index results at 8:30am, 13 July Eastern time.

New Zealand

The NZX 50 remained flat yesterday, closing at 11,103 points.

Leading the market was fast food franchise company Restaurant Brands, increasing 3.3 per cent. This movement does not appear to be linked to any news.

Tourism Holdings reversed course from Monday, rising 2.4 per cent.

Telecommunications provider Spark increased 1.9 per cent. The company announced the sale of 70 per cent of its TowerCo business for $900 million to the Ontario Teachers' Pension Plan Board.

TowerCo currently operates 1263 towers providing mobile signal throughout the country. As part of the deal, Spark has committed to build 670 additional sites over the next 10 years. The deal is subject to Overseas Investment Office approval and is anticipated to occur in the first half of FY23.

Eroad which provides fleet management services, decreased 5.0 per cent, ending the day's trading at $2.09. The share price rose 49 per cent the previous week from an all-time low of $1.42.

Church donations system provider Pushpay fell 3.9 per cent.

Commercial real-estate firm Investore Property dropped 3.0 per cent. This followed news of an on-market share buyback programme for up to five per cent of its ordinary shares, occurring between 15 July 2022 and 11 July 2023.

Stride Property, which currently owns 18.8 per cent of Investore shares, is not planning on participating in the scheme.

The Reserve Bank of New Zealand is set to announce a potential change in the Official Cash Rate (OCR) today. Consensus expectations suggest a hike of 50 basis points, which would take the interest rate to 2.5 per cent.

This would make three increases of 0.5 per cent in a row as the Reserve Bank attempts to reduce inflation, currently sitting at 6.9 per cent.

Australia

The ASX 200 closed reasonably flat yesterday, increasing just 0.1 per cent.

There were more sectors ending the trading session lower than those that closed in the green.

The utilities and consumer staples sectors were the best performing sectors, both up 1.2 per cent. The materials sector led the bottom movers, down 1.2 per cent.

Zip Co Limited rose 6.0 per cent and led the single stock movers.

Next in line was automotive retail group Eagers Automotive, which rose 3.3 per cent amid its profit guidance of A$246 million for the first half of 2022. This represents an improvement on the previous profit guidance of between A$255 million and $240 million.

The company also announced expected underlying operating profit before tax to be approximately A$195 million for the same period.

Health insurance provider NIB Holdings Limited increased 2.8 per cent yesterday, on no apparent news.

On the flip side, location-based services company Life 360 fell 12.2 per cent. Despite yesterday's decrease, the company's share price is 26.1 per cent higher for the past month.

Life 360 is scheduled to release its second quarter as well as its half-year results to the Australian Securities Exchange on 16 August.

Gold mining company Chalice Mining Limited fell 7.1 per cent yesterday. Rounding out the laggards was financial technology company Tyro Payments which declined 7.0 per cent.

In macroeconomic news, Australian consumer and business confidence is falling, as higher interest rates and inflation dissolve sentiment.

Three new surveys from ANZ, NAB and Westpac all indicate that sentiment, particularly among consumers and mortgage holders, was weak and getting weaker amid rising rates.

• For more information on the latest market moves, get in touch with Jarden.

Jarden is advising Tourism Holdings Limited on an agreement to merge with Apollo Tourism and Leisure Limited. Jarden is advising Spark New Zealand Limited on the acquisition of its TowerCo business by the Ontario Teachers' Pension Plan Board.

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